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Mayor Kuzma asked how big of an area they serve. <br /> <br />Mr. Stauffacher said they serve 10 cities, Anoka, Arden Hills, Blaine, Coon Rapids, Fridley, Ham <br />Lake, Lino Lakes, Mounds View, New Brighton, and Shoreview. <br /> <br />Councilmember Howell asked what percentage of the revenue that is brought in goes towards <br />employees’ salaries or board member compensation. <br /> <br />Mr. Stauffacher explained that their board members do not get compensated as it is a volunteer <br />role. He said around 15% goes towards salaries. <br /> <br />Ms. Peterson added that they do not have any overhead fees for an office building as Fridley City <br />Hall allows them to use their space. <br /> <br />Councilmember Specht asked how much Staff time this is expected to take. <br /> <br />Economic Development Manager Sullivan explained that the only thing Staff would be working <br />on would be to process the monthly payments and work on future grants to fund eligible marketing <br />expenses. <br /> <br />Mr. Shauffacher said they can expect a couple hours of work a month from City Staff. <br /> <br />Finance Manager Lund suggested setting up a separate fund to track this. <br /> <br />Councilmember Woestehoff asked if the 3% is the normal amount for lodging tax. <br /> <br />Mr. Shauffacher said this is the State lodging tax that must be spent on tourism. <br /> <br />Councilmember Musgrove said she is not in support of this as one of the two hotels in the City is <br />not even built yet. <br /> <br />Economic Development Manager Sullivan explained that once this lodging tax is implemented in <br />the City, whatever hotels are operational at that time will be enrolled. He said they would be able <br />to start this as of January 1, 2025, for the existing hotel in the City. He noted that once the second <br />hotel is up and running, the City will be able to begin collecting revenue from them as well. He <br />added that the owners of both of the hotels are very excited about the possibility of filling up more <br />of their rooms. <br /> <br />Councilmember Musgrove shared that she is going to advocate for the residents as this would be <br />a tax increase on them. She said she does not see value in this. She noted that when Google <br />searching Ramsey hotels, the only hotel in the City comes up and it is not difficult for people to <br />find. She added that in the future when there is a buildup of more things in Ramsey, there may be <br />an incentive for people to come and this would be more of an option at that time. <br /> <br />City Council Work Session / October 22, 2024 <br />Page 2 of 15 <br /> <br />